What would happen to your net worth if you sold a tangible asset you owned for $1,000 and used the money to pay off your credit card balance for $1,000?
A) Since your liabilities decreased, your net worth would increase by $1,000.
B) Since your assets decreased, your net worth would decrease by $1,000.
C) Your net worth would increase by $500.
D) Your net worth would remain the same.
Answer: D
Business
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